panama papers scandal and its Effects Worldwide

panama papers scandal and its Effects Worldwide

panama papers scandal are basically leaked documents that give details about the financial and attorney-client information of about 214,488 offshore entities. These documents number around 11.5 million.

These documents belonged to the Panamanian law firm and corporate service provider Mossack Fonseca, were leaked by an anonymous sorce in 2015.These leaked documents include information, both about the personal and financial about the wealthy individuals from different countries that had been kept private.

The leak shows that how the rich people in the world hide their assets and earnings from offshore companies. The cache of 11.5 million records shows how a global industry of law firms and big banks sell financial secrecy to politicians, billionaires, celebrities, and sports stars.

These leaked documents are a yearlong investigation by the ICIJ, German newspaper Suddeutsche Zeitung and more than 100 oyher news organizations.

The documents reveal the different and countless ways with which the rich can exploit secretive offshore tax regimes. 143 politicians out of which 12 are national leaders, their families and their close associates from around the world known to have been using offshore tax heavens.

Astonishingly a $2bn trail leads all the way to Russian President Vladimir Putin. Other national leaders include Nawaz Sharif ,Pakistan’s prime minister ,Petro Poroshenko, president of Ukraine,father of former British prime minister David Cameron, Alaa Mubarak, son of Egypt’s former president and the prime minister of Iceland, Sigmundur Gunnlaugsson.

Mossack Fonseca has been the focus in this entire issue. The firm is Panamanian but it runs a worldwide operation. Its consists of a network of about 600 people working in 42 countries. It has franchises around the world, where separately owned affiliates sign up new customers and have exclusive rights to use its brands. Mossack Fonseca operates in tax heavens including Cyprus, Switzerland, and the British Virgin Islands and several other tax heavens.

Tax heavens means a country or independent area where taxes are levied at a low rate.

Political Effects of panama papers scandal Worldwide:

Politically panama papers scandal has made headlines and due to this in many countries investigations had started against the political, business, sports and acting personalities. In many countries many political leaders have resigned and many are facing are investigation and trial. Such an example is of Pakistan. In Pakistan Prime Minister Nawaz Sharif and his children have been linked with off-shore companies. The opposition in the country has started a campaign to make the prime minster leave the office until the prime minister is given clean chit regarding this serious matter. The Supreme Court of Pakistan has ordered the making of a JIT to investigate the prime minister and his family. While the opposition in the country is still pressurizing Nawaz Sharif to resign and leave office.

The panama papers scandal have affected the credibility of political leaders, business tycoons etc. People of about 70 percent countries perceive corruption as a serious problem, according to a survey. The steps of ICIJ in revealing the hidden money and off-shore accounts and companies of the most influencing and powerful personalities of the world, are commendable because it will make these be held accountable and it will help to stop corruption in the world.